Class Eligibility

The “Settlement Class” includes all borrowers in the United States who, within the Class Period (as defined below), were charged by LoanCare under a hazard, flood, flood gap or wind-only LPI Policy for Residential Property, and who, within the Class Period, either (i) paid to LoanCare some or all of the Net Premium1 for that LPI Policy or (ii) did not pay to and still owe LoanCare the Net Premium for that LPI Policy.

Estimated Amount

Varies

Defendants have agreed to provide a cash award or credit to each Settlement Class Member in the following amounts: (i) A sum equal to 5% of the Net Premium if you were charged by LoanCare for a flood or wind LPI Policy during the Class Period, or a hazard LPI Policy on or after June 1, 2013; (ii) A sum equal to 8% of the Net Premium if you were charged by LoanCare for a hazard LPI Policy on or before May 31, 2013

Proof of Purchase

Yes

Case Name

Mcneil v. LoanCare LLC.
Case # 16CV-20830-KMW
District Court Southern District of Florida

Case Summary

This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, flood gap or wind-only) that is placed on a borrower’s property to protect the mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to the borrower’s mortgage contract, LoanCare pays premiums to the LPI insurer who writes the policy, and then LoanCare charges the borrowers for those premiums. The Plaintiffs have brought claims on behalf of all persons in the Settlement Class. Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), LoanCare would place insurance in a manner such that LoanCare allegedly received an unauthorized benefit. Plaintiffs allege further that LoanCare did so primarily to receive “kickbacks” in the form of commissions or other payments from the Assurant Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the rates and the amount of coverage to be excessive. All Defendants expressly deny Plaintiffs’ allegations and assert their actions are fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong. There has been no court decision on the merits of this case and no finding that Defendants committed any wrongdoing.

Settlement Pool

N/A

Deadline

06/16/17

Contact


McNeil v LoanCare Class Action Admin
1-877-865-5287

3 responses to “LoanCare Lender-Placed Hazard Insurance Class Action Settlement”

  1. Richard E Mansfield says:

    I had lender insurance placed on our loan but not sure if it is the same one\

    ADMIN – Hi Richard,

    No, this applies to insurance placed in association with your mortgage.

  2. Lyle S. Bourcy says:

    I am part of the group that the judge signed off on in May 2017. Loancare essentially force us to get insurance through them, I have not received a dime to date. What do I need to do to collect my portion of the settled suit.

    ADMIN – Hi Lyle,

    I recommend you contact the class action administrator.

  3. Lyle S. Bourcy says:

    Please advise. How do I collect???

    ADMIN – Hi Lyle,

    If you did not file before the deadline you no longer have legal recourse.

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